Cost of Gateway Project increases and completion date is pushed back

Organizers of the Gateway Program -- charged with building a new tunnel and repairing the existing one under the Hudson River -- are revising the price tag and timeline for the project. 

With rising federal interest rates, inflation and time lost to delays during the Trump administration, leadership of the project now estimate its total cost will be at least $16 billion.

That’s $2 billion more than previous estimates.

The governors of New York and New Jersey have agreed to each cover a quarter of the cost and the federal government has pledged to pay half. Yet a full funding agreement hasn’t been signed.

Organizers still hope to begin construction next fall on the new tunnel, which will cost an estimated $3 billion per mile. The entire project might not be completed for another 16 years.